Moving abroad does not necessarily mean selling your UK property. Many British expats choose to keep a house or flat in the UK and rent it out while living overseas. This can provide a source of rental income, but becoming a landlord from another country means considering how the property is insured and managed.
If you are moving overseas and intend to let your UK property to tenants, your existing home insurance may no longer be suitable. You may need specialist landlord insurance that reflects both the property’s use and the fact that you are living abroad.
Do British Expats Need Specialist Landlord Insurance?
If you move abroad and rent out your UK property, you should tell your insurer about the change in circumstances. Standard home insurance is generally intended for owner-occupied properties and may not provide appropriate cover once you become a landlord.
Landlord insurance is designed for properties occupied by tenants. Depending on the policy, it can provide cover for risks such as damage to the building, loss of rental income, landlords’ contents and liability.
Your location can also be relevant when arranging cover. An insurer needs to know that you are living overseas while the property being insured remains in the UK.
Ashburnham Insurance provides landlord insurance for British expats and other non-resident landlords living abroad, provided the insured dwelling has a UK-format postcode.
What Is a Non-Resident Landlord?
A non-resident landlord is a term that can have a specific meaning for tax purposes. HM Revenue & Customs generally considers someone to be a non-resident landlord for the Non-Resident Landlords Scheme if they have UK rental income and their usual place of abode is outside the UK. HMRC guidance states that an absence from the UK of six months or more will normally mean an individual’s usual place of abode is outside the UK, although individual circumstances can vary.
This definition is separate from arranging landlord insurance. From an insurance perspective, it is important to tell your insurer where you live and how your UK property is being used. If you move overseas without updating your insurance, your existing policy may no longer reflect the circumstances of the property.
What Does Landlord Insurance Cover?
The protection available will depend on the policy and the options selected, but landlord insurance can be arranged to cover a range of risks associated with renting out a property.
Buildings insurance can provide cover for the structure of the property against insured events such as fire, storm and certain types of escape of water. Landlords’ contents cover may also be available where furniture, appliances or other belongings are provided by the landlord.
Other options can include loss of rent, legal expenses and landlords’ liability. The availability of these covers will depend on the policy and the insurer, so it is important to check exactly what is included.
For a landlord living overseas, suitable insurance can be particularly important. Being in another country can make it more difficult to respond quickly when something goes wrong at the property, particularly if you do not have someone locally managing it on your behalf.
What If the Property Was Your Home Before You Moved Abroad?
A common situation for British expats is to rent out their former home after moving overseas. You may have accepted a job abroad, relocated for personal reasons or simply decided to live in another country while retaining your UK property.
When you originally lived in the property, your insurance would have been arranged around its use as your home. Once you move out and tenants move in, the circumstances change.
The property is now being used as a rental, which means your insurance should reflect its new purpose. This applies even if you intend to return to the UK in the future or only expect to rent out the property for a limited period.
Before the tenancy begins, speak to your insurer or insurance broker about the change. You may need to replace your existing home insurance with a suitable landlord policy rather than simply allowing the existing cover to continue.
What Should You Tell Your Insurer When Moving Abroad?
When arranging or reviewing insurance, provide accurate information about your circumstances and the property. This can include where you will be living, the location of the UK property, how it will be occupied, the type of tenants and whether a letting agent or property manager will be involved.
You should also tell your insurer if the circumstances change after the policy has been arranged. For example, the property could become temporarily unoccupied between tenancies, you could change the type of tenant, or you could appoint someone else to manage the property. Keeping your insurer informed allows the risk to be assessed based on how the property is actually being used.
Can British Expats Get Landlord Insurance in the UK?
Living overseas does not automatically prevent a British expat from arranging insurance for a UK rental property.
Specialist landlord insurance can be available for British expats and non-resident landlords who own property in the UK. The eligibility criteria will depend on the insurer, so it is important to check that your circumstances and property meet the requirements of the policy.
For overseas landlords, the property’s UK location, its use, the type of tenancy and the landlord’s country of residence can all be relevant when arranging cover.
Arrange Landlord Insurance for Your UK Property
If you are moving abroad and keeping your UK property as a rental, reviewing your insurance should be part of the process.
Your location, the property’s use, the type of tenancy and how the property will be managed can all be relevant when arranging suitable cover. Having appropriate landlord insurance in place can help protect your property and investment against insured risks while you are living overseas.
Ashburnham Insurance can arrange landlord insurance for British expats and non-resident landlords living abroad, subject to the insurer’s terms and eligibility requirements. If you are preparing to move overseas or already live abroad and rent out a UK property, speak to Ashburnham Insurance about your requirements on FREEPHONE 0800 1696137.